Zitian Technology faces regulatory action over financial reporting

Jiangsu Zitian Media Technology (SZSE:300280) has been ordered to rectify its financial reporting after an investigation by the Fujian Securities Regulatory Bureau revealed several violations. The probe, initiated in April 2024, found that the company failed to cooperate with regulators, misrepresented financial data, and did not disclose major lawsuits. Specifically, the company overstated prepayments and inventory by hundreds of millions of yuan in 2022 and 2023, and inflated revenue through sham transactions. The regulator also cited Zitian's failure to disclose legal disputes exceeding 300 million yuan. Zitian has 30 days to correct the false filings and submit a rectification report, subject to audit confirmation. Failure to comply could lead to trading restrictions or delisting risks, according to Shenzhen Stock Exchange rules.